I said above, that perhaps big biz should take on the burden of 401(k) reform and allow the incentives and tax incentives to stay on for any company employing 100 people or less. As a small business owner, 401(k) plans do help at tax time, but for employees it’s even a greater benefit.
If an employee knows a 401(k) plan is pre-tax, meaning their contribution can be deducted from their gross pay and then federal and state taxes are applied on the adjusted gross pay, they’re encouraged to sign on. Most employers also match or offer a percentage to the contributions employees make into the plan and by making it impossible for small business to offer plans such as this, you can bet workers will be looking at companies who can afford to offer them, leaving the small business talent pool in a slim to none state.
With the 2012 Presidential election race upon us, many are arguing over which is the best tax plan—should it be 9-9-9, a fair tax or a flat tax?
The sad solution or should I say reality here is that no matter who ends up taking the Presidential Oath next, proposed plans are just that, proposed and everyone remembers all those promises made by other candidates in past years only to see those promises shelved.
A President does not rule our government alone and that’s been clear of late with the feuding between our two prominent political parties.
People should be angry and most are. The small business owner should be even angrier because as a unit, it’s harder for us to stand up for ourselves—we simply don’t have the lobbyist power or the big bucks to fight any type of budget cuts.
I say instead of allowing the newly appointed Debt Super Committee of six Democrats and six Republicans to make decisions on where money could be saved, we should use some financial and economic experts who have no political dreams, only the education to make informed decisions that would affect all Americans equally, not just pick on the small business owner.
What’s your take on the 401(k) reform? Are you a small business owner who would consider cutting your employee retirement benefits if the reform passes? What are your fears if it does pass?
Drop me a comment and shout out loud while you can! Enough picking on small biz already—there are just too many other areas of government spending that could save billions if adequately reviewed by unbiased groups!
Maybe it’s time to start a new protest and forget Occupy Wall Street, and instead, Small Business Owners Everywhere Fight Back! It’s an idea at least and one with enough support could at least land us in the national news spotlight, a place we hardly see ourselves of late.